URM-application

Uniform Calculation Method (URM) Introduction

Since introducing the Pension Communication Act in 2015, the communication between pension administrators and participants has improved. However, the final step of introducing this law has yet to be taken: communication of pension amounts in three scenarios. Participants must be able to make a realistic assessment of their pension and be able to draw up a workable financial plan. In a letter to the Lower House of Parliament, Minister Koolmees from the Ministry of Social Affairs and Employment (Ministerie van Sociale Zaken en Werkgelegenheid – SZW) stated that he wished to complete this step in 2018. For administrators, this poses a new challenge and Triple A can help you with this.

Scenario amounts

Currently, both the Uniform Pension Statement (Uniform Pensioenoverzicht – UPO) and www.mijnpensioenoverzicht.nl show only one forecast pension amount. It is not immediately clear that this amount is, most times, uncertain. Implementing the last step of the Pension Communication Act and the revised European Pensions Directive (IORP) will result in three scenario amounts being communicated from 2019 and onward: the forecast pension in an optimistic, a pessimistic and the expected scenario.

Your challenge as a pension administrator

As a pension administrator, you must calculate the three scenario amounts per member based on the Uniform Calculation Method (URM). To do so, you must use 2,000 prescribed economic scenarios, and this requires an enormous amount of processing capacity. In addition, the time you have to implement these calculations in your system landscape is limited. Finally, it makes sense that your participant communication is consistent. This means you not only show the three scenario amounts on the UPO and the NPR, but also on your participant portal. All of this requires changes to your system landscape.

Our solution: a URM application

Your challenge is solved with an application that allows you to quickly and accurately perform the prescribed calculations and then derive the three amounts for all your participants. Throughout the development of our URM application, the focus was on performance. It goes without saying that our application meets all legal requirements regarding URM and is suitable for both (available) premium and benefit agreements.

Our solution is at the intersection of Actuarial and IT. Not only do we supply you with an application but we also implement it in your system landscape. We link the URM application to your administration system, provide an interactive link with your portal and also provide the desired access to the National Pension Register (NPR).

Demo

To give you an impression of our solution, we have created a notional system landscape in our demo, comprising an administration system, a link with a portal and a link with the NPR. Our demo focuses on available premium agreements. For these agreements, the URM regulations are clear, while there remains a great deal of uncertainty regarding benefit agreements.

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